Yahoo meets earnings forecast; exceeds on revenue

Yahoo significantly increased its revenue and earnings in its third quarter, the result of what the company called an accelerated pace of development for new products and services, which in turn boosted Yahoo's advertising business.

Compared with last year's third quarter, Yahoo's revenue grew 154 percent to US$907 million. Meanwhile, net income rose to US$253.3 million, or US$0.17 per share, from US$65.3 million, or US$0.05 per share.

Excluding a one-time gain related to an investment sale and a resulting tax benefit, Yahoo's net income came in at US$124 million, or US$0.09 per share, meeting the consensus expectation from analysts polled by Thomson First Call.

Excluding traffic acquisition costs, which are revenue shared with and paid to affiliates of Yahoo's Overture unit, revenue came in at US$655 million, exceeding analyst consensus expectations by US$11 million.

Overture, which Yahoo bought in October 2003, sells online ads that run in a network of Web sites. Based on context, Overture matches the ads with Web pages in the network, meaning that ads for baseball gloves should appear in Web pages about baseball. The ads are also matched to search engine queries, so that a user who queries a search engine for "baseball gloves" should see contextually relevant ads.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?